China is continuously changing the last years from the extended workbench of western companies to a market for services and goods and continuous to develop with high speed.
The back draw of this development are higher wages, from 2009 to 2017 the wages increased in average by 12%, currently slowing down to 7% - 8%.
With these wages manufacturing becomes increasingly costly in China. Therefore the factories must be made more efficient, inventories reduced and waste should be eliminated.
In China Lean-Culture is not applied in a lot of companies, which I visited.
As the extended workbench of western markets, Chinese companies were in a very comfortable position - but they are now feeling the pressure of the globalized economy and competition in the domestic market. Chinese companies that learn and apply the Lean concept can compete better. The others will probably disappear from the market.
Only a few Chinese companies already understand the idea of lean management. As long as business leaders and owner are not prepared to accept change and drive it forward, it is unlikely that employees will try new ways or innovate on their own. The most difficult challenge is to convey the principle to the senior management of large corporations and the owners of small and medium-sized companies - above all the two concepts of learning by doing and doing by leading.
Companies should focus on training employees on problem-solving skills. Chinese workers are used to delegating tasks from management. It is a management task to raise the understanding of the problem among employees and to encourage colleagues to try out their own ideas for improvement.
To enable manager and employees for problem solving it is necessary to train them in key competencies.
In China, lean projects have to be ordered from above:
1. Change to lean production is expected by employees as a top-down initiative.
2. Clear rules and objectives are the key to success.
3. Measurability is more important than in Europe.
4. Standards must be set, demanded and permanently monitored in their compliance.
If these requirements are met, the implementation often overtakes comparable lean production projects in western countries.
Lean Best Practices is our guide for Lean Deployment.
After having long term asignments in 2017 and 2018 we are happy to continue our Lean training with new and old customer.
In August we will start to support Bolzoni-Auramo (Wuxi) Forklift Truck Attachment Co., Ltd. in their start of the Lean Journey.
In March 2013 Bolzoni-Auramo (Wuxi) officially started the production of attachments for fork lift trucks in Wuxi, Jiangsu Province.
Bolzoni-Auramo (Wuxi) principally acts as the nerve centre for Asia and Pacific markets but also serves Europe and America for specific needs.
Jiangsu China, October, 24th
In the afternoon of 20th, experts, scholars and entrepreneurs from Germany, Shanghai and Nantong, China discussed manufacturing transformation on Transformation and Upgrading of Nantong Manufacturing Forum. They explored direction of industrial development and gave some suggestions on the topic of Industry 4.0 and Chinese enterprise transformation.
Many experts analyzed Industry 4.0 and thought that it is useful for Chinese economy and enterprise development. Mr. Jens, consultant of Joint Board of Directors of Small and Medium Enterprise (BVMW), said that Germany was going to enter the next innovation phase by conducting Industry 4.0. Industry 4.0 will be combined with production automation and information technology, which is the direction of transformation and upgrading of manufacturing industry in Nantong.
Mr. Brinkmann, senior consultant said, Industry 4.0 connected embedded system production technologies and smart production processes to prepare the way to a new technological age. Building Internet of things is one of way of Chinese manufacturing upgrading. Enterprise needs to give up traditional management and realize Lean manufacturing and mass production by automation to improve efficiency and cut down production process and cost.
Mr. Brinkmann said, education investment is not only a stuff needs to be considered by government but also by enterprises. “German small and medium enterprises invest a lot of money in vocational education. They train a common school student into a proficient worker to support industrial development.” He also said, China has a good education foundation and the Government needs to encourage more enterprises to train their workers in learning education and training system of workers in Germany so that they can have an opportunity for improvement.
Links with Chinese article:
On Tuesday th 19th of February 2019 Wuxi LST Owner Mr. Andreas Brinkmann participated in an event of the Wuxi International Chamber of Commerce at the Wuxi Factory of Vaillant.
The Vaillant history stretches back to the year 1874 when the company was founded by Johann Vaillant in Remscheid, Germany. Ever since then, Vaillant has been a market leader in the heating and ventilation technology industry. Since the opening of a plant in Wuxi in China (2007), Vaillant can now operate on the Asian-Pacific market.
During the factory tour Vaillant presented their Assembly Lines, which are running in one-piece-flow. Seeing the lines operating during the factory tour, they are a clear proof, that LEAN and ONE-PIECE-FLOW area also able in China and industries, which are not High Volume or Automotive. Using MTM, Cell Layout, Poka-Yoke, Visual Management beside other Lean Principles, Vaillant is a leading sample for Lean Manufacturing in China.
Asking the host Mr. Sylvain BENOIT - Local Head of Research and Development Vaillant Wuxi - if there are issues on keeping the one-piece-flow sustained, he answered: "As long the management is behind the Lean Prinicples and supervises them, there are no issues on implementing and sustaining of lean manufacturing in China."
Congratulations to this success and modern factory.
If your company wants to learn, how to achieve similar or same results, contact Wuxi LST.
In September 2016 two of our clients decided to sign a 12-month service contract with us. Based on their former experience in the cooperation with Wuxi LST, they are convinced, that a cooperation with Wuxi LST will be of advantage for their performance.
With the service contract the time-consuming contract negotiations are not necessary anymore and the service can be provided faster. Now they only need to contact Wuxi LST with their request and will receive the service immediately.
How does it work?
Our customer needs training or support in the operations management, he will send a email or just give us a call, explain what the issue is and Wuxi LST will inform them about the earliest available time – which usual will not be more than 2 days later.
Wuxi LST will than perform the requested service. At the end of each month an “Activity Conformation” will be send to the client. After the client did sign the “Activity Confirmation” the invoice will be send.